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9/5/06 (Reuters) Ford Motor Co. needs a new business model in order to turn the = automaker around, according to a memo addressed to staff by its Chairman = and Chief Executive Bill Ford and seen by Reuters.On Thursday, Ford said it wanted to sell its Aston Martin luxury unit to = free up funds to invest in its other brands amid a sharp downturn in = sales.
In the memo, dated Friday, September 1 and published by the Detroit News = on Saturday, Bill Ford outlined the problems facing the company and his = aims to turn it around.
"The business model that sustained us for decades is no longer = sufficient to sustain profitability," the memo, shown to Reuters by a = representative for the company, said.
"We must change to a new business model that requires greater = bottom-line contributions from cars and crossovers, continued leadership = in pickups in North America, healthier profits from all other business = units, growth in Asia, greater integration of our global operations and = an evaluation of strategic alliances."
Crossovers are midway between cars and sports utility vehicles (SUVs). = SUVs are large passenger automobiles popular in the U.S.
Bill Ford wrote in the memo that the return to profitability in the = company's largest business unit, in North America, was key to its = success around the world.
He wrote that since becoming CEO in 2001, the company had aligned = product development of Ford, Lincoln and Mercury models "much more = closely" with Mazda and Volvo, to improve efficiency and produce "more = exciting vehicles," adding he wanted to drive this effort deeper.
Regarding leadership, he wrote that he was now "even more determined to = continue to develop leaders inside the company and to attract leaders = from outside when we need additional skills to turnaround our business."
Separately, Bill Ford said in a magazine interview he was prepared to = let someone else lead the car maker his great-grandfather founded should = the right manager be available.
Ford told the September 11 issue of Newsweek in an interview posted on = the magazine's Web site: "I'm always looking to bring talent into this = company. If I can find somebody